Fish shortage leaves SL at sea over EU demand

By Shanika Sriyananda

Due to a shortage in fish supplies, Sri Lanka is unable to satisfy growing demand among European countries, which mostly order tuna, following the removal of the ban imposed by the European Union (EU) on the country’s fish exports.

Fisheries and Aquatic Resources Development Minister Mahinda Amaraweera told the Daily FT that there was demand for 1,000 metric tonnes of fish from EU countries but the country had failed to meet this demand due to a sharp decline in local fish stocks.

After the 15-month ban by the EU was lifted, Sri Lanka recommenced its fish exportation to the region by shipping a consignment of fish to the Netherlands on 22 June.

The EU officially lifted the ban on 17 June after evaluating the progress made by Sri Lanka’s new Government in fulfilling the European bloc’s requirements for the removal of the ban.

“We have exported over 200 metric tonnes of fish to EU countries since the EU lifted the ban. We got orders from fish exporting companies to supply nearly 1,000 metric tonnes of fish but we had to cancel the orders due to very low fish supplies,” he said.

Sri Lanka suffered a $ 100 million annual loss due to the EU ban on Sri Lanka’s fish exports. Sri Lanka, the second largest fish exporter to EU countries, exported 68 % of its fish to the EU while exporting the rest of the stocks to other countries, including the US and Japan.

The EU’s ban caused significant damage to the country’s fisheries industry, which earned $ 83.4 million in 2013 by exporting fresh and chilled swordfish and tuna to the EU.

“Tuna is mainly exported to the EU as there is a significant demand for tuna. It fetches a good price too,” Minister Amaraweera said.

The minister said that the EU’s ban on Sri Lanka’s fish exports was chiefly responsible for a steep decline in the country’s seafood exports. “It declined by 35.5 %. The export earnings from seafood came down from $ 252.7 million in 2014 to $ 163.1 million in 2015,” he explained.

However, the minister said that if the current situation persisted the ministry would look into the possibility of importing and then re-exporting fish to meet the growing demand from the EU.